Toronto tops global index for house price growth

Toronto tops global index for house price growth

Toronto and Hamilton have joined Reykjavik, Hong Kong, and the Indian port city of Kochi among the cities that saw home prices rise by over 20% in the second quarter of 2017, according to Knight Frank’s Global Residential Cities Index.

For the first time, Toronto led the 150-city ranking, which is released quarterly by the UK-based real estate consultancy. Hamilton, which entered the top 10 in the previous quarter, placed at number three, behind Toronto and Kochi.  

Toronto’s 29.3% twelve-month index price increase was enough to earn the city the top spot. The three Chinese cities that were ranked above Toronto in the first quarter – Wuxi, Nanjing, and Zhengzhou – saw price growth decelerate, though two of the three cities remained in the top 10, with growth exceeding 20%.

However, Toronto’s days at the top spot may already be numbered.

“Following the introduction of a new tax on foreign buyers in April of this year, Toronto may follow Vancouver’s path and see price growth moderate in the coming months,” said Kate Everett-Allen, Knight Frank’s head of international residential research. “Our index covers the period to June 2017 but the latest data from the Bank of Canada shows Toronto registered a decline in prices in August – the first since January 2016.”   

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